---
title: "Major institutions and HDP outline"
subject: "Hydropower Engineering"
chapter: 1
key: "semester_7/hydropower_engineering:institutions-and-hdp-outline"
source: https://www.bctengineer.com/q/semester_7/hydropower_engineering/institutions-and-hdp-outline
site: BCT Engineering
---

# Major institutions and HDP outline

Hydropower Engineering · Chapter 1: Introduction

- Asked in: 2075 Chaitra, 4 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/hydropower_engineering/institutions-and-hdp-outline
- Whole chapter: https://www.bctengineer.com/md/semester_7/hydropower_engineering/chapter-1

## Question

Name the major institutions involved in the hydropower development sector in Nepal. Briefly outline the hydropower development policy of Nepal.

## Short answer

Major institutions: MoEWRI, WECS, DoED, NEA, ERC, IBN, AEPC, DHM, IPPs. The policy aims for low-cost, reliable power and export, enabling private BOOT with licensing (survey 5 yrs, generation 35/30 yrs), tax benefits, NEA power purchase, export after domestic demand, IEE/EIA and local benefit sharing.

## Answer

#### Major institutions
- Ministry of Energy, Water Resources and Irrigation (MoEWRI) - policy and law.
- Water and Energy Commission Secretariat (WECS) - planning and studies.
- Department of Electricity Development (DoED) - licensing and monitoring.
- Nepal Electricity Authority (NEA) - generation, transmission, distribution, power purchase.
- Electricity Regulatory Commission (ERC) - tariff and regulation.
- Investment Board Nepal (IBN) - large investments.
- Alternative Energy Promotion Centre (AEPC) - micro-hydro and renewables.
- Department of Hydrology and Meteorology (DHM) - hydrological data.
- Private developers (IPPs) and associations such as IPPAN.

#### Outline of the Hydropower Development Policy 2001
1. **Aim:** Low-cost, reliable and affordable electricity, rural electrification, and export of hydropower.
2. **Private participation:** The private sector can build, own, operate and transfer projects; the government acts as regulator and facilitator.
3. **Licensing:** No licence up to 1 MW; survey licence up to 5 years; generation licence up to 35 years (domestic supply) or 30 years (export-oriented).
4. **Incentives:** Tax holiday, customs relief, low royalty in the early years, and repatriation of profit.
5. **Power purchase:** NEA buys power under a PPA.
6. **Export:** Allowed after meeting domestic demand.
7. **Environment and society:** IEE/EIA, environmental flow, local benefit sharing and resettlement.
8. **Rural electrification** through small and micro hydro with community participation.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which institution provides hydrological data?
   A. DHM
   B. IBN
   C. AEPC
   D. ERC
   Answer: A. DHM collects rainfall and flow data. (Key point: Hydrology data)

2. Which institution promotes micro-hydro and renewables?
   A. WECS
   B. DoED
   C. IBN
   D. AEPC
   Answer: D. AEPC promotes micro-hydro in rural areas. (Key point: Micro-hydro)

3. When is export allowed under the policy?
   A. Before domestic demand
   B. Never
   C. After meeting domestic demand
   D. Only by NEA
   Answer: C. Export is allowed after domestic demand is met. (Key point: Export condition)

4. Which are incentives in the policy?
   A. Fixed 10% tax
   B. Ban on equipment import
   C. Tax holiday, customs relief, low early royalty, profit repatriation
   D. High royalty from start
   Answer: C. These encourage investors. (Key point: Incentives)

## Related in Hydropower Engineering

- [Institutions in Nepal's hydropower sector](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ainstitutional-setup-hydropower) — Hydropower Engineering, chapter 1, asked 2×
- [Hydropower Development Policy 2001 (2058 BS)](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-2001-objectives-features) — Hydropower Engineering, chapter 1, asked 4×
- [HDP objectives, strategies and institutions](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-objectives-strategies-institutions) — Hydropower Engineering, chapter 1
- [HDP 2001 features and private sector](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-2001-private-sector) — Hydropower Engineering, chapter 1
- [Importance of hydropower development in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Aimportance-hydropower-nepal) — Hydropower Engineering, chapter 1
- [Licensing provisions in hydropower policy](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-licensing-provisions) — Hydropower Engineering, chapter 1, asked 2×

## Related in other subjects

- [Development of hydropower in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Ahydro-development-nepal) — Power Plant Design, chapter 1
- [Role of NTA in Nepal's telecom sector](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Arole-of-nta) — Telecommunications, chapter 7, asked 3×
- [Energy sector and poverty in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Aenergy-development-poverty-nepal) — Energy Environment and Society, chapter 2
- [Government support and startup policy in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Astartup-policy-government-support-nepal) — Entrepreneurship Development, chapter 8